Global diffusion, policy flexibility, and inflation targeting

Figures & data

Figure 1. IT adoptions from 1990 to 2013

Table 1. Estimates of IT adoption logit models (standard errors in parentheses) with interaction terms analyzing the conditional effects of the polity score (Model 2) and the flexibility of IT in nearby countries (Model 3)

	Model 1	Model 2	Model 3
Intercept	$-{11.26}^{\ast \ast \ast }$	$-{25.05}^{\ast \ast \ast }$	$-{19.28}^{\ast \ast \ast }$
	$(2.54)$	$(6.06)$	$(4.03)$
Polity	${0.42}^{\ast \ast }$	${1.84}^{\ast \ast \ast }$	${1.25}^{\ast \ast \ast }$
	$(0.16)$	$(0.59)$	$(0.36)$
Exchange Rate Classification	${0.20}^{\ast \ast \ast }$	${0.23}^{\ast \ast \ast }$	${0.23}^{\ast \ast \ast }$
	$(0.07)$	$(0.07)$	$(0.07)$
Central Bank Independence	$0.62$	$0.45$	$0.52$
	$(1.09)$	$(1.10)$	$(1.09)$
Political System	$0.06$	$-0.01$	$0.01$
	$(0.23)$	$(0.24)$	$(0.24)$
FDI (% of GDP)	${0.10}^{\ast }$	${0.12}^{\ast \ast }$	${0.13}^{\ast \ast }$
	$(0.06)$	$(0.06)$	$(0.06)$
Exports (% of GDP)	$-0.01$	$-0.01$	$-0.02$
	$(0.02)$	$(0.02)$	$(0.02)$
GDP per capita	$-1.28$	$-1.50$	$-1.14$
	$(2.12)$	$(2.24)$	$(2.17)$
IMF Conditionality	$-0.88$	$-0.86$	$-0.84$
	$(0.74)$	$(0.75)$	$(0.76)$
Capital Controls	$-0.67$	$-0.94$	$-0.94$
	$(0.73)$	$(0.73)$	$(0.73)$
IT Flexibility in Nearby Countries	$-0.14$	$-0.30$	${5.63}^{\ast \ast \ast }$
(Spatial Lag)	$(0.65)$	$(0.66)$	$(1.83)$
Polity $\times$ $t$		$-{0.09}^{\ast \ast \ast }$
		$(0.03)$
IT Flexibility (Spatial Lag) $\times$ Polity			$-{0.71}^{\ast \ast \ast }$
			$(0.21)$
$t$	$0.28$	${1.13}^{\ast \ast }$	$0.26$
	$(0.48)$	$(0.54)$	$(0.50)$
$t^2$	$0.07$	$0.12$	$0.21$
	$(0.41)$	$(0.42)$	$(0.43)$
$t^3$	$-0.07$	$-0.10$	$-0.11$
	$(0.11)$	$(0.11)$	$(0.11)$
AIC	262.18	256.05	254.10
BIC	333.57	332.54	330.59
$N$	1211	1211	1211

${ }^{\ast \ast \ast }p<0.01$, ${ }^{\ast \ast }p<0.05$, ${ }^{\ast }p<0.1$.

Figure 2. Marginal effect of the polity score on the probability of IT adoption with 95% confidence intervals over time, based on the estimates of Model 2 (see Table 1)

Figure 3. Top plot: marginal effect of IT flexibility in nearby countries on the probability of IT adoption with 95% confidence intervals for polity scores from 0 to 10, based on the estimates of Model 3 (see Table 1). Bottom plot: density of polity score in the sample